Looking to balance out your exposure to SCM? The ETFs below have the lowest correlation with SCM — they tend to move on their own, which can help reduce risk when SCM drops. The stock ideas table highlights individual companies that behave independently from SCM.
Best Diversifiers for SCM
9 ETFs have low correlation with SCM (below 0.3), 1 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.06, roughly unchanged from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.06 | 0.02 | -0.01 | 100 | Ultrashort Bond | SCM vs SGOV | |
| iShares MSCI Global Silver and Metals Miners ETF | 0.04 | 0.09 | 0.14 | 55 | Silver, Precious Metals | SCM vs SLVP | |
| Invesco Ultra Short Duration ETF | 0.08 | 0.06 | 0.02 | 100 | Ultrashort Bond | SCM vs GSY | |
| Convergence Long/Short Equity ETF | 0.09 | 0.13 | — | 95 | Long-Short | SCM vs CLSE | |
| Janus Henderson AAA CLO ETF | 0.14 | 0.11 | 0.06 | 98 | CLO | SCM vs JAAA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SCM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SCM and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.06, down from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.06 | 0.14 | 0.18 | 69 | Consumer Defensive | |
| W. P. Carey Inc. | 0.11 | 0.21 | 0.24 | 79 | Real Estate | |
| Cohen & Steers Infrastructure Fund, Inc | 0.12 | 0.23 | 0.28 | 63 | Financial Services | |
| BlackRock Science and Technology Trust | 0.23 | 0.19 | 0.27 | 88 | Financial Services | |
| Central Securities Corp. | 0.35 | 0.30 | 0.37 | 82 | Financial Services |
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